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Is money earned from working with other clients, without informing the partner, considered a betrayal of the partnership, especially since the partner was slow in providing the necessary funding for the company, which led to losses?

1 min readAlso available in العربية

Scholars have differed on the permissibility of a factor (Mudarib) working for more than one person during the same period, with the details being as follows:

Firstly: If the working hours of the Mudaraba are specified, it is not permissible for the factor to work for another person during the same hours. Otherwise, it would be a betrayal and a dereliction of duty.

Secondly: If the Mudaraba hours are not specified, which is usually the case, scholars have differed: - The Maliki and Hanbali schools are of the opinion that it is impermissible if it harms the first Mudaraba, unless with the permission of the capital owner. The Hanbalis stipulate that the profit from the second Mudaraba should be returned to the first, while others hold that the profit belongs to the factor, though he incurs sin. - The Hanafi and Shafi'i schools permit it absolutely.

The more preponderant opinion is that if your additional work does not harm the first Mudaraba, there is no objection to it. However, if it does harm it, then your work is impermissible, but the resulting profit belongs to you.

Important Notes: 1. If you performed the work in the name of the company (owned by you and your partner), then your partner has a share of the profits, which should be determined by experts, or settled amicably. 2. If the factor (Mudarib) acts negligently or violates the terms, causing a loss, he is held liable for his dereliction of duty. 3. The capital owner does not have the right to restrict the factor in a way that harms his work or leads to a loss. The capital must be handed over to the factor so that he can manage it independently.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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